Energy Department Extends Operational Order for Indiana Power Plants

The U.S. Department of Energy has extended an order requiring the Northern Indiana Public Service Company (NIPSCO) to continue operations at the Wheatfield generating station. Energy Secretary Chris Wright renewed this order on Thursday, effective from Monday through September 19, according to a DOE announcement.

Sandhill cranes are seen flying near the smokestack of the Schahfer Generating Station, a coal-fired power facility, on February 9, 2026, in Wheatfield, Indiana. (Brian Cassella/Chicago Tribune)

According to Wright, removing reliable generation from the grid jeopardizes energy reliability and needlessly increases energy costs. He stated, “During peak summer demand, Midwesterners deserve continued access to affordable, reliable, and secure energy to power and cool their homes.”

The order also mandates that the F.B. Culley generating station in Newburgh remain operable. Both of these stations were initially scheduled for retirement at the end of 2025. The DOE announcement notes that these orders aim to minimize electricity costs and reduce the risk of unnecessary blackouts for U.S. citizens.

A DOE spokesperson previously remarked that the emergency order prevented blackouts and potentially saved many lives. However, environmental and utility advocates argue that the order yields no benefits and continues to impose costs on ratepayers, as archived by Post-Tribune.

A NIPSCO spokesperson communicated via email that the utility is complying with the order while assessing its impacts on operations, customers, and employees. During an Indiana Utility Regulatory Commission hearing, it was revealed that units 17 and 18 at Schahfer are currently non-operational due to maintenance and repair efforts, as noted in Post-Tribune archives.

“Units 17 and 18 are currently offline for inspections, maintenance, and repairs, including extensive turbine and boiler work,” the NIPSCO statement read. These units will continue to support reliability across MISO’s Northern and Central Zones following these orders. Additionally, FERC has authorized NIPSCO to seek cost recovery related to the 202(c) orders.

NIPSCO is committed to safe operations and providing reliable energy to customers and MISO zones in compliance with the 202(c) order. Sandhill cranes are observed in a coal ash pond adjacent to Schahfer Generating Station during its operation, February 9, 2026. (Brian Cassella/Chicago Tribune)

U.S. Representative Frank Mrvan from Highland expressed opposition to the order’s renewal, citing exorbitant energy costs for Northwest Indiana residents. “At a time when ratepayers in Northwest Indiana are already facing rising utility bills, this action will continue to impose burdensome costs on regional families and businesses,” Mrvan stated. He urged Wright to rescind the order and work towards lowering utility costs.

Mrvan’s letter mentioned NIPSCO’s estimated losses of $11.5 million to keep Schahfer operational, and referenced analyses from the Institute for Energy Economics and Financial Analysis indicating nationwide maintenance costs for coal-fired plants beyond planned closures amount to $300 million, with expectations to rise by $30 million monthly.

In July 2025, the Citizens Action Coalition reported statewide electric utility bill increases exceeding $28 monthly, marking a 17.5% hike. NIPSCO residential customers experienced the most significant impact, with a $50 monthly increase, equivalent to 26.7% within a year.

Mrvan highlighted Wright’s testimony on April 15 before the U.S. House Appropriations Subcommittee on Energy and Water, where he mentioned reversing the directive if deemed not “net-beneficial to ratepayers.” “Imposing additional costs on families struggling with utility bills is unnecessary,” Mrvan stated. These costs hinder seniors, families, and workers from maintaining their electricity supply.

Solar farms populate the landscape as observed on February 9, 2026, in Wheatfield, Indiana. (Brian Cassella/Chicago Tribune)

Mrvan is not alone in opposing the emergency orders. Indiana public interest groups such as the Citizens Action Coalition, Just Transition Northwest Indiana, and the Hoosier Environmental Council have joined forces with EarthJustice, the Sierra Club, and the Environmental Law and Policy Center to challenge the executive order, according to Post-Tribune archives.

EarthJustice asserted that these orders override decisions by power companies, grid operators, and state utility regulators committed to retiring the plants in the customers’ best interests. Previously, NIPSCO embarked on a multiyear effort to close its coal-fired generating stations, planning to replace them with efficient, sustainable energy sources like wind, solar, and battery storage.

NIPSCO intends to transform the Schahfer station into a natural gas facility to provide energy for data centers, including a $15 billion investment by Amazon Web Services in the region, including Hobart, as per Post-Tribune archives.